Decision on industry proposals (CMP264 and CMP265) to change electricity transmission charging arrangements for Embedded Generators


The full background to these proposals may be found in our document entitled “Embedded Benefits: Consultation on CMP264 and CMP265 minded to decision and draft Impact Assessment” published on 1 March 2017. We received 86 responses to our Consultation and stakeholders have engaged extensively with us over the matters set out in that document.  

Following our March consultation, having taken into account all responses to our impact assessment and our open letters and having carried out further modelling, the Authority decided to confirm our “minded to” position and direct that Workgroup Alternative CUSC Modification (WACM) 4 should be made. These matters were considered by the Authority on 15 June 2017. WACM 4 removes the TNUoS Demand Residual (TDR) payments to smaller EG and introduces a new payment (equivalent to the avoided GSP costs), introducing the changes through a three-year phased implementation, beginning on 1 April 2018.

This decision letter is to assist those stakeholders who hold contracts for the Capacity Auction 2015, and have to make decisions in relation to the Financial Commitment Milestone (FCM) on or before 22 June 2017. A full decision and final impact assessment will be published on or before Thursday 22 June 2017.